Mobius: Everybody wants a BMW in China

Orders for foreign cars have surged in China, so much so that the likes of luxury German car maker BMW are struggling to keep up with demand from the region's growing middle class, according to Franklin Templeton's Mark Mobius.

The executive chairman of the Templeton's emerging markets group said BMW was doing an "incredible job" in China. The firm's Chinese production arm Brilliance China Automotive is the largest holding in his $3.3 billlion emerging market investment trust, with 8 percent of the fund's assets invested in the car maker.

Chinese brand cars have struggled to compete with foreign car makers and exports have fallen over 12 percent year-on-year, according to the China Association of Automobile Manufacturers. The group warned earlier this year local manufacturers' development prospects are "grave".